1. 1 Turnover/output measures in the telecommunication industry in Norway 23 rd Voorburg Group Aguascalientes, Mexico September 2008 Mona Irene Andersen

2. 2 Industrial classification National classification: SN2002 –Based on NACE rev. 1.1 (ISIC rev. 3.1) with further breakdown of the division NACE rev. 1.1 (ISIC rev. 3.1) ActivitiesSN2002Activities 64Post and telecommunications64Post and telecommunications 64.2Telecommunications64.2Telecommunications 64.20Telecommunications64.21Fixed telecommunication activities 64.22Mobile telecommunication activities 64.23Internet service activities 64.24Other telecommunication activities

3. 3 New standard classification NACE rev.2 (ISIC rev. 4)SN2007Activities 61 Telecommunications 61.1 Wired telecommunications activities 61.2 Wireless telecommunications activities 61.3 Satellite telecommunications activities 61.9 Other telecommunication activities SN2007 is identical to NACE rev. 2 The transition to new classification standard will be according to requirements from Eurostat and the national accounts

4. 4 Statistical information on the telecommunication industry - produced by Statistics Norway Structural business statistics (SBS) –Annual –Partly administrative registers (the VAT Register) and sample survey –A supplementary questionnaire provides with detailed data on turnover Turnover index (STS) –Quarterly –Administrative registers; the VAT Register Service Producer Price Index (SPPI) –Quarterly –Sample survey National accounts (NA) Wage statistics Statistics on the use of ICT in Norway

5. 5 The telecommunication industry in Norway 2006 (SBS data): –863 local KAUs –Turnover: ca. €7.5 billion Contribute about 2 per cent to the GDP of mainland Norway Strong growth since early 1990s Fully liberalized from 1998 Dominated by a few, large enterprises

6. 6 Unit of measure Turnover data from the SBS: –In NOK (1 EUR = ca 8 NOK) –Sum of remuneration for rendering services, sales of merchandise and gross income of other activities –Includes: »Rental income »Commissions –Excludes: »Special taxes »VAT »Public grants »Profit on the disposal of fixed assets

7. 7 Turnover in the industry *SBS data by the local KAU level

8. 8 Product details Turnover is carried out at a less detailed level than the CPA *SBS data by the local KAU level

9. 9 Product details and market conditions The products seems to have their relevance through the period 2002-2006 Other services contribute about 20 per cent of the total turnover –Lack of information on the content  Satellite services A new product classification will be considered in the SBS

10. 10 The SBS and the STS The SBS is the primary source of turnover –Measures the level of economic activity –Output in the national accounts follows turnover from the SBS with a few adjustments The STS measures short-term economic development –Preliminary figures Different treatment of changes in the business population Different definition of turnover

11. 11 Less fluctuations in turnover figures from the SBS SBSSTS 20044.6 %6.7 % 2005-2.5 %-4.2 % 20066.5 %10.2 %

12. 12 Service producer price index for telecommunication activities Covers B2B, B2C and B2all –The monthly CPI gives the index for private households Quarterly Sample survey –The largest enterprises based on their share of total industry turnover Component prices and direct use of price on repeated services –Real transaction prices and list prices –Contracts Source of weighting data: –the sample –the Norwegian Post and Telecommunications Authority

13. 13 Product details in the SPPI The activities are at a less detailed level than CPA CPA 2002ActivitiesSN2002 64.20.11Public local telephone services64.21 64.20.12Public long distance telephone services64.21 64.20.13Mobile telephone services64.22 64.20.18Internet access provision services64.23

14. 14 Turnover and price movements The STS shows larger fluctuations in turnover than in prices –Increased turnover is mainly caused by higher traffic Quarterly percentage movements Turnover*Prices 1st qr. 20062.1-1.8 2nd qr. 2006-3.70.1 3rd qr. 20063.6-3.6 4th qr. 20066.6-1.7 1st qr. 2007-2.8-0.1 2nd qr. 20070.7-0.1 3rd qr. 20072.6-0.3 4th qr. 20077.9-0.6

15. 15 New products in the SPPI Transition to SN2007 when publishing 1st quarter of 2009 –The index will cover  61.1 Wired telecommunication activities  61.2 Wireless telecommunication activities –61.3 Satellite telecommunication activities will be considered –The new classification might make it easier to identify activities in 61.9 Other telecommunication activities